ITAT: Rectified Defective Return Relates Back to Original Date

ITAT Holds Rectified Defective Return Relates Back to Original Filing Date

The Income Tax Appellate Tribunal (ITAT) has deleted an addition of Rs. 6.39 crore in the case of Uber Health Tech, ruling that a rectified defective return under Section 139(9) relates back to the original filing date. This determination rendered the assessment proceedings initiated under Section 143(2) time-barred.

The AO had issued a notice under Section 143(2) beyond the limitation period, treating the rectified return as a fresh filing. However, the ITAT relied on settled jurisprudence, including decisions from the Supreme Court and various High Courts, holding that a return filed after rectification of defects retains the legal character of the original return, including its filing date for limitation purposes.

The filing date of the original return stands preserved upon rectification; the AO cannot circumvent limitation by treating a rectified return as new.

This decision reinforces the principle that procedural compliance with defect rectification does not reset limitation, protecting taxpayers from belated scrutiny. Practitioners must verify the date of original filing when dealing with time-barred notices in defective return cases.